Impacts on the Retail Fuel Price in Malaysia

Impacts on the Retail Fuel Price in Malaysia Background description of retail fuel price in Malaysia According to the local news on 7 March 2013, the retail price of RON 97 will be RM2.90 per litre when it was previously RM2.70. Meanwhile, the retail price of RON95 remains unchanged as it is subsidized by the government. In May, a 20 sen drop incurred for RON 97 per litre. There was no change in price for RON 95 and diesel. On September 2, 2013, Malaysia’s Prime Minister, Datuk Seri Najib Razak announced that the price of diesel and RON95 petrol would increase by 20 sen (Bridel Lontoh, 2014) joining neighboring Indonesia to threaten investor confidence besides curbing in subsidies (Chong, 2013). There was a 20 sen price incremental to 2 Ringgit per litre for diesel and the new price for RON 95 is RM 2.10 per litre from RM 1 (Lim, 2013). â€Å"The hike was to prevent financial leakage and misappropriation of the subsidised fuel,† said Tun Dr Mahathir Mohmad, reportsBernama (Phung, 2014). The retail price of RON 97 continued to increase by 15 sen (Lim, 2013). In November, the price of RON 97 had gone down to RM2.75 per litre from the existing RM 2.85 per litre (Lim, 2013). On the first month of 2014, the price of RON 97 went up 5 sen to RM2.80 per litre. Another 5 sen was incurred for the price of RON 97 in the following month. In March, the previous price of RON 97 brought up with a new retail price of RM2.90. The RON 97 price decreased with a 5 sen to RM 2.85 per litre. (Lim, 2013) On 9th September, the price of RON97 dropped by 10 sen to RM2.75 per litre. (Lim, 2013). Royal Malaysian Customs Department senior assistant director Ishak Daud toldSin Chew Dailythat there is an addition of 80 to 85 zero-rated items. Prime Minister Datuk Seri Najib Razak announced that diesel and LPG will be exempted from the Goods and Services Tax (GST) taking effect in April 2015 (Tan, 2014). The prices for RON 95 petrol and diesel will slightly increase by 20 senon 2 October, announced by the Ministry of Domestic Trade and Consumer (Sze, 2014). The Sun reported that Political party PAS urged for an increase in price for both petrol and diesel, to allow petrol station operators compete with each other (Lim, 2014). Theprices of petrol and diesel were indicated to drop until January of next year (Lee, 2014). In short, the graph in 2013 shows there’s an upward trend for Ron95 and diesel where there’s a rise in 20sens on 3 September. However, the fuel price for Ron97 fluctuates between a low of RM2.70 and a peak of RM2.90 before ending at RM2.75 at the end of the year. In 2014, there was a plateau in fuel price for Ron95 and diesel from January to September and then it increase gradually. For Ron97, the fuel price rises since January but then fell gradually after June. Fuel price in Malaysia between 2013 to 2014 (Galvin, 2015) Date Ron 97 (RM) Ron 95 (RM) Diesel (RM) 10 Jan 2013 2.70 (-0.05) 1.90 ( ) 1.80 ( ) 7 Mac2013 2.90 (+0.20) 1.90 ( ) 1.80 ( ) 22 May 2013 2.70 (-0.20) 1.90 ( ) 1.80 ( ) 3 Sep 2013 2.70 ( ) 2.10 (+0.20) 2.00 (+0.20) 5 Sep 2013 2.85 (+0.15) 2.10 ( ) 2.00 ( ) 14 Nov 2013 2.75 (-0.10) 2.10 ( ) 2.00 ( ) 8 Jan 2014 2.80 (+0.05) 2.10 ( ) 2.00 ( ) 7 Feb 2014 2.85 (+0.05) 2.10 ( ) 2.00 ( ) 7 Mac 2014 2.90 (+0.05) 2.10 ( ) 2.00 ( ) 6 Jun 2014 2.85 (-0.05) 2.10 ( ) 2.00 ( ) 9 Sep 2014 2.75 (-0.10) 2.10 ( ) 2.00 ( ) 2 Oct 2014 2.75 ( ) 2.30 (+0.20) 2.20 (+0.20) 19 Nov 2014 2.55 (-0.20) 2.30 ( ) 2.20 ( ) 1 Dec 2014 2.46 (-0.09) 2.26 (-0.04) 2.23 (+0.03) Note: Ron 95 and diesel are subsidies by government, while pricing of Ron 97 is determined according to market forces. Ron 92 remains at RM1.70 since 16 Dec 2008 Determinant for retail fuel price Demand and supply of crude oil   Ã‚   The world’s biggest economies such as the United States, consumes most oil in the world. The other world’s largest oil consumer includes Japan, Canada and South Korea (Gethard, 2008). However, the country that plays the biggest role in oil consumption is China. In 2013, China surpassed the United States becoming the worlds largest importer of crude oil as they took up one-third of growth in the global demand (Eia.gov, 2014). As China is currently a dynamic and fast-growing economy, China’s demand and usage of oil grows rapidly. The development of the country’s economy can be seen in China’s increasing number of factories and growth in number of people driving cars (Wagner, 2008). As China economy starts developing rapidly only these recent years, their oil reserves are not as much compare to other developed economies like the United States who had reserved oil for many years, thus China’s has extensive demand for oil from the global market. T his increased demand has contributed to the rise of global crude oil price which has indirectly raise retail fuel prices in Malaysia. Organization of Petroleum Exporting Countries (OPEC) is a body that has great influence over the worldwide price of oil which compriseof 12of the worlds largest oil producing nations (Gethard, 2008). Since there is a shortage of the worldwide oil production, OPEC as the biggest oil supplier reduces the amount of oil contributed to the world market and manipulate the selling price of oil per barrel. Besides, political conflicts in Libya sustains its crude oil production further leading worldwide oil supply to decrease (Batovic, 2014). With uncertainty of supply, countries compete with each other for crude oil supply and this rising demand increases the price of crude oil. The global market now has to pay at a higher price for the same amount of oil. As the cost of purchasing crude oil price increases, the Malaysia government increases the retail fuel price to the citizens. Foreign exchange rate Because the world crude oil price is set in US Dollars, the conversion of world oil price into Malaysia ringgit changes every day in the foreign exchange rate market. Suppose there is a fall in Malaysia’s ringgit against the US dollar on the world currency exchanges, Malaysia has to pay more to purchase the same amount of fuel from the global market. Example the increase from US$1.00 = RM3.50 to US$1.00 = RM3.75 indicates a depreciation in Malaysia dollar. As the cost of purchasing crude oil increases, this implies citizens have to pay more for the same amount of fuel too. The foreign exchange rate is constantly monitored by the Malaysia government before determining the retail price of fuel. Therefore, the retail fuel price often fluctuates. Subsidy The changes in retail price of fuel depend on the provision of subsidies by the government. If the government provides subsidies for fuel such as the Ron95 and diesel, the price is cheaper compare to the price of Ron97 which is not subsidies. In 2013, MYR 24.8 billion (US$7.9 billion) was allocated to fuel subsidies. The government argued that the subsidy reduction would save at least MYR 1.1 billion (US$349 million) by the end of 2013 (Lee, 2013). The cost saved in subsidies would be channeled into the BR1M welfare fund, said Prime Minister Najib Razak (Lam, 2013). By doing so, 20 sen was increased in the price of RON 95 and diesel starting on 3 Sept of 2013. In brief, the absence of subsidy causes retail fuel to rise in Malaysia. Effects Consumer Low oil price results in the savings cascade down into the rest of the economy in form of cheaper prices. Consumers will hence have more disposable income to spend (Parry Kemp, 2012) leading to higher purchasing power. Besides, individual who drives car can save the cost for car petrol monthly. High oil price causes consumers to have less disposable income to spend especially those with a lower income. After barely consuming the necessities such as groceries, there will be not much money left to afford the luxuries, for example, travelling with family and friends. Producer Falling oil price brings negative impact on the mining industry, for instances those extracting oil and natural gas or constructing the pipelines to move those commodities. For producers, cheaper prices mean either less profits or even losses. Thus, oil producer will supply less oil to the market until oil prices rise back. If a person is required to pay more for oil, delivered goods and others, less will be left over for discretionary spending by the consumers (Parry Kemp, 2012). Buying a new home is such type of discretionary expenditure. Hence, the producers of the housing will supply less as the demand from consumers had fall. Besides the housing producers, other sectors are also affected. As fuel is needed for transportation to deliver goods and services, higher oil price will affect the delivery sector as transportation fee is higher. Not to mention, oil producers may use this opportunity to charge a higher price on fuel to gain more profit as well. Government As oil producers are taxed by Malaysia government, when oil prices are lower, government revenues will drop. There is always measure to be taken to diminish the damage. Government can save money by reducing or removing oil subsidy. Through this, government can spend the money on other area like education, welfare of the society or development of infrastructure for the economic growth of Malaysia. Inversely when oil price is higher, the cost to build or maintain infrastructures will be higher as materials, labors, and other costs needed to build or repair infrastructures are higher. Fuel consumption for the transportation of these materials also leads to higher expenditure of the government. As government spends more money on this area, they will have to cut back expenditure on other areas such as health care and education expenses (Parry Kemp, 2012). Conclusion In conclusion, the demand and supply for crude oil, foreign exchange rate and subsidy provided by the government affects the retail fuel price in Malaysia. When oil price is low, government gain less tax revenue, producer gain less profit and consumer have more spare money to spend, where they might afford luxury goods after purchasing necessities like groceries. When oil price is high, government gain more tax revenue, producer gain more profit and consumer have less spare money to spend. If the producer loses and not gaining profit, employees might get fired, causing them to be jobless and have less money for consumption. Reference list Batovic, A. (2014). Five political risk factors affecting oil markets in 2014 Global Risk Insights. [online] Global Risk Insights. Available at: http://globalriskinsights.com/2014/01/five-political-risk-factors-that-will-affect-oil-markets-in-2014/ [Accessed 21 Jun. 2015]. Bridel, A. and Lontoh, L. (2015). [online] Available at: https://www.iisd.org/gsi/sites/default/files/ffs_malaysia_lessonslearned.pdf [Accessed 14 Jun. 2015]. calvin, d. (2015). Malaysian Fuel Price History decoding galvin. [online] decoding galvin. Available at: http://blog.galvintan.com/malaysian-fuel-price-history [Accessed 14 Jun. 2015]. Chong, P. (2013). Malaysians Brace for Austerity as Najib Cools Spending: Economy. [online] Bloomberg.com. Available at: http://www.bloomberg.com/news/articles/2013-09-16/malaysians-brace-for-shift-to-austerity-as-najib-cools-spending [Accessed 14 Jun. 2015]. Eia.gov, (2014). U.S. crude oil production growth contributes to global oil price stability in 2013 Today in Energy U.S. Energy Information Administration (EIA). [online] Available at: http://www.eia.gov/todayinenergy/detail.cfm?id=14531#tabs_SpotPriceSlider-2 [Accessed 14 Jun. 2015]. Gethard, G. (2008). How Does Crude Oil Affect Gas Prices?. [online] Investopedia. Available at: http://www.investopedia.com/articles/economics/08/crude-and-gas-prices.asp [Accessed 14 Jun. 2015]. Lam, J. (2015). It’s finally here, fuel price up tonight. New taxes next? The Malaysian Insider. [online] Themalaysianinsider.com. Available at: https://globalvoicesonline.org/2013/09/10/fuel-price-increase-divides-malaysia/ [Accessed 14 Jun. 2015]. Lee, J. (2014). Fuel prices in Malaysia to fall further – Ahmad Maslan. [online] Paul Tans Automotive News. Available at: http://paultan.org/2014/12/09/fuel-prices-malaysia-fall-ahmad-maslan/ [Accessed 14 Jun. 2015]. Lee, S. (2015). It’s finally here, fuel price up tonight. New taxes next? The Malaysian Insider. [online] Themalaysianinsider.com. Available at: http://www.themalaysianinsider.com/malaysia/article/ron95-and-diesel-price-up-20-sen-from-midnight [Accessed 14 Jun. 2015]. Lim, A. (2013). RON 95 and diesel to go up by 20 sen per litre, effective Sept 3. [online] Paul Tans Automotive News. Available at: http://paultan.org/2013/09/02/ron-95-diesel-go-rm2-10/ [Accessed 14 Jun. 2015]. Lim, A. (2014). PAS calls on govt to impose ceiling price on fuel. [online] Paul Tans Automotive News. Available at: http://paultan.org/2014/12/05/pas-calls-on-govt-to-impose-ceiling-price-on-fuel/ [Accessed 14 Jun. 2015]. Parry, G. and Kemp, S. (2012). Investigate Macroeconomics. 2nd ed. Western Australia: Tactic Publications Pty Ltd. Phung, A. (2015). Petrol price hike not to burden people, says minister | theSundaily. [online] Thesundaily.my. Available at: http://www.thesundaily.my/news/1187644 [Accessed 14 Jun. 2015]. Sze, G. (2014). RON 95, diesel prices up by 20 sen from October 2. [online] Paul Tans Automotive News. Available at: http://paultan.org/2014/10/01/ron-95-diesel-20-sen-october/ [Accessed 14 Jun. 2015]. Tan, D. (2014). GST will include petrol, not in zero-rated list Kastam. [online] Paul Tans Automotive News. Available at: http://paultan.org/2014/09/12/petrol-not-exempted-gst/ [Accessed 14 Jun. 2015]. Wagner, H. (2008). What Determines Gas Prices?. [online] Investopedia. Available at: http://www.investopedia.com/articles/economics/08/gas-prices.asp [Accessed 14 Jun. 2015].

Art Essay Introduction- Penny Byrne

Penny Byrne is an Australian born artist. She was born in Mildura, Victoria, Australia. She lives in Melbourne and owns her own studio. She is interested in ceramics and works as a ceramics conservator. She did a bachelor of fine arts ceramics in Melbourne in 1987 and graduated from west Dean College in the UK after doing ceramics and glass conservation and restoration. She also did a bachelor of laws at La Trobe uni in Melbourne and uses her knowledge of political and social issues in her art.Penny Byrne uses her knowledge of ceramics and knowledge of world issues combined with simplicity and in your face messages in her artwork ‘how much can a polar bear #2’ (2008, sculpture, ceramic, 9. 5x7x11cm). Her artwork makes a public comment on the melting polar ice caps due to global warming and the effect that this is having on the polar bears. Byrne uses her knowledge of ceramics in this sculpture as she appropriates this ready-made ceramic polar bear figure. She has taken a polar bear figure and put scuba diving gear on it to make it innocent and helpless.She uses relevant choices of material as she isn’t creating more waste, putting across this environmentally friendly message. The message she is putting across is made obvious through her use of scuba diving gear and the title of the work. She wants people to think about the polar bears and the environment she cares so much about and she achieves this through simplicity and easy understanding. The overall meaning of this artwork is that the polar bears are struggling, to find food sources, to adapt to new climate and that we aren’t helping, in fact we are making it worse.This is obviously a topic that Byrne feels strongly about. I find that she works well to channel her personal interests into the work and her uses of materials are appropriate to her knowledge, and the message she is putting across. Overall with the simplicity of the message and the use of appropriate materials are effe ctive and work well with the knowledge and personal interest shown in her work. She uses this in many of her of her other works such as ‘the four horse men of the 21st century apocalypse’.

The Bizarre Secret of Narrative Essay Samples for Students

The Bizarre Secret of Narrative Essay Samples for Students Narrative Essay Samples for Students Can Be Fun for Everyone Expository writing is the most prominent when one is writing an expository essay, which might arrive in lots of forms. The exact first step in writing an interesting expository essay is to select an excellent topic. The absolute most important feature to keep in mind when writing an expository essay is that you ought ton't write about your personal opinions. Thirdly, you need to ensure the validity of writing. Introduction essay paragraphs are central in any bit of writing for the reason they give readers advance details about the content and the intention behind the material. Expository essay intends to inform readers about some subject with good evidence. As stated by the context, the amount of your essay might vary. An expository essay outline presupposes a crystal clear structure, which isn't tough to embody. Narrative Essay Samples for Students Secrets Put simply, everything would be dependent on verifiable fact an expository essay. A topic sentence might identify what type of book it's, or the types of readers for whom the book might be of interest and why. In this kind of essay, you should describe something without being metaphoric. The very last thing you would like to do in your own personal narrative essay is confuse your readers. The key issue is to learn from the experience and apply the feedback to generate the next essay better. There are lots of expository essay topics to select from. Expository essays offer more thorough understanding of a specific topic. To put it simply, an expository essay explores all angles of a specific topic in a bid to teach the audience something they may not know. Essay writing is normally practiced is schools. Expository essay topics might be selected by means of a student as inquiry. Essay writing provides a great deal of benefits to students in the academe. Writing an essay is an essential role in academe life. Reading though samples will lower your time later on, since you will begin writing your essay with clear understanding how to compose your own paper. An introduction is easily the most significant part your bit of writing. Now you have a strong, informative, and intriguing introduction it's time to begin with the body paragraphs. As a consequence, their p apers are unstructured and frequently pointless. Persuasive essays should have logical and very clear reasoning supported by facts and arguments. Cause and effect essays are written to supply an explanation of the way in which an action causes a result. The 5-Minute Rule for Narrative Essay Samples for Students If you're going to compose an expository essay, be ready to devote much time hitting books. Every experience affects an individual in some manner. It is not as concerned with controlling the educational procedure, attempting to create circumstances where the student would establish their own objectives and achieve them, while transforming their own self and self-regulating the studying process. Explain why parents are from time to time strict. If you don't wish to compose a lengthy paper, you may use our example of short expository essay writing that you can locate on our website. There's no ideal solution on the best way to compose an effective essay. If this is t he case, you might have a very good beginning to your expository essay. To structure an essay, you should simply adhere to the above mentioned format. The thesis of the expository essay ought to be based on factual information which will be shown in the body of the essay. There are various forms of expository essays. They follow the same rules as most essays. While an expository essay needs to be clear and concise, it may also be lively and engaging. Definitions of Narrative Essay Samples for Students The cost of an essay rides on the quantity of effort the writer has to exert. There are struggles that may easily be eliminated when you're in the early phases of writing your personal narrative essay. The benefits of a quick essay is you may focus on a single side of the situation. Before you commence writing, it is suggested to look at the expectations and needs of the readers. What to Expect From Narrative Essay Samples for Students? Should you need different kinds of statement templates, then you may want to go to our site. After determining what kind of statement you require, start looking for that sort of template on line. With the access to different statement templates online in various file formats, it is now very easy for anybody to make and produce their own statements. Narrative statements are written in chronological order regardless of what form or document they'll be written on, so the readers are going to be able to easily understand the statement made. Look closely at your language as it ought to be eerror-free Imagine your essay is a precious stone and create all its faces shine using an easily readable and authentic language. Secondly, your thoughts ought to be well-organized and supported with the assistance of persuasive evidence. In school, it's an unavoidable truth that you are going to be requested to write something about a topic which sometimes you're so eager to finish. Additionally, there are times when you truly feel like you don't need to write anything.

Prioritizing Policy On A State Government Essay - 1405 Words

Name Course Tutor Date Prioritizing Policy Issues in a State Government Since the great recession, most economies the US economy has gone five years without full recovery. The labor market and incomes of low-and middle class was severely affected, which later dented the growth of the economy. Nonetheless and somehow surprising, the recession was as a result of a shortfall in household economies and demand for goods and services, which would be solvable to avert such a situation Arguably the best summary measure to define today’s economy is the â€Å"jobs gap†Ã¢â‚¬â€the number of jobs necessary to restore prerecession labor market health. Filling the jobs gap would take more than three years of annual economic growth averaging at least 5 percent—growth rates that will not materialize without an abrupt change in fiscal policy. If the average monthly gains of 181,000 jobs throughout 2012 persist, this jobs gap would not close until 2019. In short, five years after the onset of the Great Recession, full economic recovery still remains years and years away. Unemployment is another symptom of the Great Recession. Here, unemployment stood at 7.8 percent in December 2012, more than three percentage points higher than the 4.6 percent average of 2006 and 2007. That is also higher than the peak unemployment rate following the recession of 2001, and equal to the peak rate following the recession of 1990–1991. Due this, increasing attention has been paid to those states that, despite the urbanShow MoreRelatedThe Oregon Health Services Commission1647 Words   |  7 Pageschanges took affect1. His death became the face of the problem over the debate of prioritized services. This essay will argue that cost-effectiveness analysis (CEA) is not a just procedure for prioritizing health services. It will argue that priority for the worse off would be the most just approach in prioritizing services for Medicaid recipients through the case study of the Oregon Health Services Commission. I believe that priority to the worse off is the better alternative to CEA because it considersRead MorePeople Think Representatives Should Respond : Their District Or The Country1458 Words   |  6 Pagesauthor, David Doherty, in this article, â€Å"To Whom Do People Think Representatives Should Respond: Their District or the Country†, attempts to understand whether voters recognize the incentives in a representative democracy and reward legislators for prioritizing district preferences over the nations. In order to answer this question, the author performs two experiments by asking participants to examine legislators who supported or opposed a certain bill. By understa nding people’s responses, political scientistsRead MoreCritique Of The Current Policy Challenge Essay1321 Words   |  6 PagesCritique of the Current Policy Challenge 3. The challenge is towards the personal responsibility of a public servant is to its preamble declarations of the Untied State Constitution and its protection enumerated promise of fundamental fairness towards the rights of the people and by the laws in which came forth by its union of states’. Consequently, as the population grows and desires begins to inquire more demands on its unity to respond. The efforts of our forefathers knew their intentionsRead MoreThe Great Civilizations And Empires Have Changing Political Structure Of The Nation Essay1695 Words   |  7 Pagesdeeply rooted political divisions that are caused by a lack of compromise and politicians prioritizing other issues besides those plaguing the majority of the empire. Often times, violence and hatred begin to infiltrate the government and compromise becomes impossible between two opposing ideologies. In Roman civilization, the deep rooted political division can be traced back to the Senate ignoring the policies of the Gracchi brothers and their ensuing deaths. In the present American society, the politicalRead MoreU.s. Obama And Donald Trump s Views On Immigration Essay1434 Words   |  6 PagesClinton believed in bringing families that were separated by the immigration process back together, and to create an easier and more efficient immigration process. In contrast, Donald Trump believed in building a wall across the borders of the United States and Mexico to prevent illegal immigrants from entering the country while also trying to speed up the immigration process. Three major newspaper companies, (The New York Times, The Guardian, and The Washington Post) were found to be the most intriguingRead MoreSecretary Of State Condoleezza Rice1097 Words   |  5 Pages In June of 2005, Secretary of State Condoleezza Rice went up to 600 people at the American University in Cairo and delivered a very powerful speech on the advancement of democracy in the Middle East. â€Å"For 60 years, my country, the United States, pursued stability at the expense of democracy in this region here in the Middle East, and we achieved neither, she declared, â€Å"Now we are taking a different course. We are supporting the democratic aspirations of all people.† Her speech was seen as an attackRead MoreThe Ideal City Of Plato1602 Words   |  7 PagesPlato was a mentor of Aristotle lending ideas to his student about composition and operation of citizens, city state, and political regimes. Although Aristotle criticized Plato’s notion of ranking democracy at a fourth position out of five competing systems of government, he agreed with Plato that democracy is the corrupt form of government as it violates justice of proportionality. The concept of justice of proportionality is to answer who is the most deserving. This is explained in an analogy ofRead MoreDevelopment Of Egyptian Cca Projects Essay1057 Words   |  5 PagesClimate change have enormous negatives risks threaten livelihoods and hinder development around the globe, according to Global Humanitarian Forum 500 million people are at extreme risk due to floods, droughts, landslides and tropical cyclones so governments, NGOs, private sector, and other stakeholders address climate change adaptation through projects and initiatives that represent the practical ways to adapt with CCR. Monitoring and evaluating process is responsible for being sure that the CC projectsRead MoreShould The Federal Government Be Responsible For Funding Art Programs?981 Words   |  4 PagesTO: Lawrence Gamble, White House Policy Director FROM: Chloe Hourdequin, AP Government and Politics Student SUBJECT: Public Policy on Federal Funding for the Arts DATE: December 12, 2014 ________________________________________________________________________ Sections One: Issue: Should the federal government be responsible for funding art programs (including art supplies/ tools, service training/staff, etc.) in public education establishments, or should thoseRead MoreBarack Obama s Presidential Election981 Words   |  4 Pageswith Obama’s presidential victory was immense. The promises throughout his campaign lifted the hopes of every citizen throughout the country. Change! It’s what everyone was needing. He symbolized as sign of hope with promises of creating equality, prioritizing diplomacy over war, challenging corporate greed, generating jobs for rising unemployed, and reforming healthcare to provide coverage for all citizens. (creating equality) The presidential election of Barack Obama is easily one of the most momentous